Yoel Romero Wins $27 Million But It’s Not Collectable

The breaking news in today’s MMA scene is Yoel Romero’s $27 Million win against a supplement company called Gold Star Performance Product.

According to Romero’s manager, Abraham Kawa, on the l Helwani’s MMA Show”  today, the fighter was awarded $27.45 million in New Jersey court for his lawsuit against Gold Star Performance Products. Romero has sued the supplement company under the New Jersy Consumer Fraud Act for negligently producing Shred Rx was contaminated with Ibutamoren. Romero said he tested positive for the banned substance after taking Shred Rx. This ultimately led to the USADA determination that Romero had used a contaminated substance and a six-month suspension.

Breakdown of the Award

It was reported that he received $3 million each for lost wages, reputable harm and emotional damage. The total of $9 million was then multiple by three because of New Jersey’s Consumer Fraud Act. Romero filed suit against the company after a tainted supplement resulted in a failed USADA drug test for the UFC middleweight. Kawa revealed the news via message on “Ariel Helwani’s MMA Show” on Tuesday.

Romero was represented by attorney Howard Jacobs in the case. “The Soldier of God” received $3 million apiece for lost wages, reputable harm and emotional damage, and that total was then tripled under the New Jersey Consumer Fraud Act, according to Kawa.

Can Romero Collect the $27 Million

It is unlikely that Romero can collect on the $27 million award. The reason for this is that it was a default judgement. Romero’s attorney served the lawsuit on Gold Star but the company failed to respond to a lawsuit. His lawyer then obtained a default judgement against Goldstar Performance Products on August 23, 2018. Yoel Romero then obtained an entry of final judgment by default as to liability (fault) on December 7, 2018. When a company fails to respond to a lawsuit it gives up its right to defend itself against the claims in lawsuit. Us plaintiffs lawyers see a default judgement as a red flag. Only irresponsible broke companies allow a default judgement to be taken against it. The court’s subsequent award of whatever amount Romero’s attorney asked for is routine procedure. When a company defaults, you can write your own check on the judgement but it’s unlikely to be collected.

What this means

“The money is second to clearing [Romero’s] name,” Kawa wrote on Twitter. It really doesn’t. Here’s the reason why. The case never went through discovery and presented to a jury. No fact finding process took place to link Romero’s failed drug test to Shred Rx. Just because the company went broke and failed to defend itself does not mean it caused Romero to fail his drug test and a 6 month suspension by the USADA.

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